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At the end of the current year, the following information is available for both West Elm Company and East Park Company. West Elm Company East

At the end of the current year, the following information is available for both West Elm Company and East Park Company. West Elm Company East Park Company Total assets . . . . . . . . . . $396,396 $1,650,000 Total liabilities . . . . . . . . 178,596 1,237,500 Total equity . . . . . . . . . . 217,800 412,500 Required 1. Compute the debt-to-equity ratios for both companies. 2. Comment on your results and discuss what they imply about the relative riskiness of these companies.

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